McColl's Posts Sales Of Over £1 Billion, Boosted By Acquisitions

UK convenience retailer McColl's has posted sales of £1.13 billion in 2017, up by 19.1% compared to the previous year, following the 'successful integration' of nearly 300 newly-acquired stores.

Total like-for-like sales were up by 0.1%, with growth in key grocery categories, according to the retailer.

Gross margin was up by 60 basis points to 25.7%, reflecting a higher mix of convenience stores and an improved product mix, and profit before tax increased from £17.7 million to £18.4 million.

McColl's noted that performance was significantly boosted by the integration of 298 new stores, which the group agreed to acquire from the Co-op in 2016. The store transformations were completed last July.

"We have delivered a strong financial performance with a step-up in sales and profitability propelled by our acquisitions," said Jonathan Miller, chief executive of McColl's.

"By surpassing £1 billion in annual revenues for the first time we have demonstrated that this is now a business of real scale," he added.

"Our convenience-led strategy continues to bear fruit, reflected by a sustained improvement in gross margin as we strengthened our product mix and the proportion of convenience stores has grown to 80% of our estate."